U.S. Department of Energy - Energy Efficiency and Renewable Energy

EERE Financial Opportunities

Hawaii's New Energy Bills to Boost Efficiency, Renewable Energy

June 28, 2006

Hawaii Governor Linda Lingle capped off her approval of a package of
energy bills on June 26th by signing Senate Bill 2957, which encourages
renewable energy and renewable fuels. The new bill raises the limits on
the state's tax credits for solar photovoltaic, solar thermal, and
wind energy systems and makes the tax credits permanent. To encourage
homeowners to install cost-effective renewable energy systems such as
solar hot water systems, the bill establishes a pilot project for
utility financing of the systems, allowing homeowners to pay the cost
through their electric bills over a period of time. To boost the use
of biodiesel in Hawaii, the bill establishes a preference for
biodiesel when the state government buys fuel. The bill also
establishes programs to provide funds to conduct a statewide biofuels
assessment; to assist the agricultural community with the development
of energy projects; and for the research, development, and testing of
hydrogen power technologies. See the governor's
press release
and the
full text of SB 2957.

The governor's "Energy for Tomorrow" package also included three other
energy bills—House Bills 2175 and 2848 and Senate Bill 3185—that
she signed on May 12th and June 2nd. HB 2175 requires the state to
lead by example, setting green building standards for state buildings;
instructing state agencies to maximize their use of energy-saving
contracts; appropriating $5 million for solar power systems on public
schools; and requiring 20 percent of the state's new vehicles to be
hybrids, alternative fuel vehicles, or the most efficient vehicles in
their class, with the percentage increasing to 35 percent in 2007 and
to 75 percent in 2015. The bill also encourages new green buildings by
giving them priority when they apply for construction permits. See the governor's
press release
and the
full text of HB 2175.

SB 3185 strengthens the state's renewable energy requirements by
removing language regarding utility profits and authorizing the
state's Public Utility Commission (PUC) to set penalties for failing
to meet the standards. It removes links between fossil fuel costs and
the price paid to renewable power producers, and allows the PUC to
determine if utilities should absorb some of the impact of rising oil
prices. It also establishes a public benefits fund for energy
efficiency programs, and allows the PUC to decide if an independent
agency should run the programs instead of the utilities. Finally,
HB 2848 appropriates $200,000 to reconvene the Hawaii Energy Policy
Forum to develop an action plan, timeline, recommendations, and
benchmarks to meet the state's energy self-sufficiency goals. See the governor's
press release and the full text of
SB 3185 and
HB 2848.